Bonita Industries reported the following information for 2017.

Bonita Industries Comparative Balance Sheets December 31
Assets		2017			2016			Change Increase/Decrease
Cash		$65,990			$36,180			$29,810	Increase
Accounts receivable		62,110			22,220			39,890	Increase
Inventory		43,610			–0–			43,610	Increase
Prepaid expenses		5,960			3,980			1,980	Increase
Land		54,550			70,570			16,020	Decrease
Buildings		198,140			198,140			–0–
Accumulated depreciation—buildings		(21,120	)		(14,080	)		7,040	Increase
Equipment		182,420			68,470			113,950	Increase
Accumulated depreciation—equipment		(28,360	)		(9,970	)		18,390	Increase
Totals		$563,300			$375,510
Liabilities and Stockholders’ Equity
Accounts payable		$43,320			$40,140			$3,180	Increase
Accrued expenses payable		0			10,030			10,030	Decrease
Bonds payable		99,680			149,230			49,550	Decrease
Common stock ($1 par)		229,490			60,120			169,370	Increase
Retained earnings		190,810			115,990			74,820	Increase
Totals		$563,300			$375,510

Bonita Industries Income Statement For the Year Ended December 31, 2017
Sales revenue				$946,400
Cost of goods sold		$476,940
Operating expenses		230,920
Interest expense		12,090
Loss on disposal of equipment		2,010		721,960
Income before income taxes				224,440
Income tax expense				64,840
Net income				$159,600

Additional information:
1.		Operating expenses include depreciation expense of $39,740.
2.		Land was sold at its book value for cash.
3.		Cash dividends of $84,780 were declared and paid in 2017.
4.		Equipment with a cost of $164,470 was purchased for cash. Equipment with a cost of $50,520 and a book value of $36,210 was sold for $34,200 cash.
5.		Bonds of $49,550 were redeemed at their face value for cash.
6.		Common stock ($1 par) of $169,370 was issued for cash.

Use this information to prepare a statement of cash flows using the indirect method.

Answer rating: 100% (QA)

Cash Flow Statement Cash Flow from Operating Activities Net Income 1... View the full answer